OREANDA-NEWS. Fitch Ratings has downgraded Titan Europe 2006-2 plc's class F and G notes due 2016, and affirmed the others, as follows:

EUR7.6m Class F (XS0254358699) downgraded to 'Dsf' from 'Csf'; Recovery Estimate (RE) 100%
EUR29.3m Class G (XS0254648263) downgraded to 'Dsf' from 'Csf'; RE revised to 95% from 20%
EUR16.3m Class H (XS0254647612) affirmed at 'Dsf'
EUR0m Class J (XS0254653180) affirmed at 'Dsf'

KEY RATING DRIVERS
The rating actions reflect that the notes suffered a maturity event of default in January. The upward revision of the RE on the class G notes is a result of a court judgment handed down in April that found no basis for the (subsequently redeemed) class X noteholder's claim for reimbursement. Previously, Fitch had provisioned for up to EUR20m of costs in its assumptions. Moreover, the loan insolvency administrator recently achieved a better than expected minimum sale price on the Labrador collateral (EUR39.7m, 19.1% above the June 2013 market value).

RATING SENSITIVITIES
The ratings on all notes will be withdrawn within 11 months of this rating action.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.

Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
- Servicer reports provided by Hatfield Philips International as at 10 May 2016
- Transaction reporting provided by US Bank as at 25 April 2016